The delays in the issuing of the Initial Public Offer (IPO) of Botswana Telecommunications Corporation Limited (BTCL) shares to the public are justified, according to the legal advisors of the process.
Rizwan Desai, Senior partner at renowned law firm Collins and Newman, who are the legal advisors of the IPO issue, says the sale of national asset such as BTCL is of grave concern and there are many technical processes to follow.
Rizwan Desai, Senior partner at renown law firm Collins and Newman and Co. told a stakeholders workshop last week, organized by Public Enterprises Evaluation and Privatisation Agency (PEEPA), that the postponements of the issuing of the IPO was due to necessity to handle all due processes.
“One thing that has not been clear enough is that BTCL is not a small start-up; it is an arduous task to sell of a national asset and it has taken the necessary time to ensure that all the preparatory work is done,” said Desai.
Desai pointed out that the Corporation operates in a highly regulated environment and other stakeholders include international suppliers and contract holders, as well as the formal processes that need to be followed, such as the Companies Act requirements.
Though Desai was not at liberty to specify the approvals being sought from various authorities such as the Botswana Stock Exchange and the Ministry of Transport and Communications, he indicated that such approvals are currently being processed, and will the IPO to be issued by the date of 31 December 2014.
The Botswana Telecommunications Corporation Limited shares did not go on sale on November 7th as planned.
The Ministry had intended to launch the IPO on 7th November but this has since been postponed to an unspecified date but not later than 31, December, 2014. Furthermore, as an added measure, the period of offer will also be open for a period of up to 8 weeks.
The launch of the IPO had initially been slated for August 2014 but was moved to November 7. This postponement comes after the initial postponement from the August 2014 to November 7 date, that was initially set for the listing of the BTCL shares.
The decision to further postpone the IPO date to 31 December 2014 came after prospective buyers, at various awareness Pitso held across the country recently, including major centres like Francistown and Gaborone, expressed their need for more time to mobilise funds to buy into the Company.
Desai said that the question of whether or not December is an ideal time to issuing the IPO is constantly being reviewed and that due considerations will be taken.
The Corporation said in a statement, explaining the delay that: “Two key issues, however, have been raised repeatedly in these fora which we believe we need to address. Firstly, the audiences, especially amongst the individual citizens, indicated that they had limited understanding of an IPO as well as how one can participate and benefit from it. Secondly, they requested for ample time to organise funding that they would use to purchase the shares with, in essence, that the current IPO date was too close.”
Desai admitted that with all considerations, the dates that were issued as the IPO were ‘too ambitious.’
The sale of the BTCL shares has been touted as a great investment instrument open to citizens, by BTCL chief executive Paul Taylor.
The Initial Public Offering (IPO) will see Government offering 49 percent of the shares on the BSE of which five percent has been reserved for BTCL employees through an Employee Share Ownership Programme (ESOP). Government will retain the remaining 51 percent. Citizens who buys and hold shares for foreigners stand to lose their investment amount if discovered by the Corporation.
BusinessPost understands that fronting by Botswana nationals for non citizens, is a possibility, even as the shares are reserved firstly for citizen individuals, then for institutional investors, which might include non citizens.
Desai pointed out that the monitoring of citizen investment will occur through gate keeping processes at the constitution of the corporation, at the stage were transfer secretaries handle the transactions, as well as at the stage were dividends are declared. Those who front for non-citizens stand to lose their investments, Desai said.
In the financial year 2012/13, BTCL revenues surged past the billion pula mark to stand at P 1.375 billion compared to P 1.187 billion recorded in the 2011/12 financial period.
Profit before tax increased by 20 percent from P237 million recorded in 2011/12 to P284 million in 2012/13 with net profit margin growing to 21 percent from 20 percent in the previous year.
The IPO will come with a prospectus that entails the price as well as the story of the IPO journey, as well as an ‘independent review of the numbers’ by financial advisors Deloitte, a global financial services firm.
Desai also clarified the 5 percent of the shares that are reserved for employees are held in a trust, saying BTCL employees are entitled only to dividends declared and do not own these shares. The employees forfeit these dividends when they leave the company’s employ. However, employees are also entitled to buy the BSE listed shares and enjoy ownership of BTCL shares.
Lucrative and highly anticipated national lottery tender that saw several Batswana businessmen partnering to form a gambling consortium to pit against their South African counterparts, culminates into a big power gamble.
WeekendPost has had a chance to watch lottery showcase even before the anticipated and impending national lottery set-up launches. A lot has been a big gamble from the bidding process which is now set for the courts next year January following a marathon legal brawl involving the interest of the gambling fraternity in Botswana and South Africa.
Households representing more than half of Botswana’s population-mostly residing in rural areas- do not know where their next meal will come from, but neither do they take into consideration the quality and/or quantity of the food they consume.
This is according to the latest Prevalence of Food Insecurity in Botswana report which was done for the 2018/19 period and represents the state of food insecurity data even to this time. The Prevalence of Food Insecurity was released by Statistics Botswana and it released results with findings that the results show that at national level 50.8 percent of the population in Botswana was affected by moderate to severe food insecurity in 2018/19, while 22.2 percent of the population was affected by severe food insecurity only.
According to the report, this translates to 27 percent of the population being food secure that is to say having adequate access to food in both quality and quantity. According to Statistician General, Burton Mguni, when explaining how the food data was compiled, Food and Agriculture Organization of the United Nations (FAO), is custodian of the “Prevalence of Undernourishment (PoU)” and “Prevalence of moderate or severe food insecurity in the population based on the Food Insecurity Experience Scale (FIES)” SDG indicators, for leading FIES data analysis and the resultant capacity building.
“The FIES measures the extent of food insecurity at the household or individual level. The indicator provides internationally comparable estimates of the proportion of the population facing moderate to severe difficulties in accessing food. The FIES consists of eight brief questions regarding access to adequate food, and the questions are answered directly with a yes/no response. It (FIES) complements the existing food and nutrition security indicators such as Prevalence of Undernourishment.
According to the FIES, with increasing severity, the quantity of food consumed decreases as portion sizes are reduced and meals are skipped. At its most severe level, people are forced to go without eating for a day or more. The scale further reveals that the household’s experience of food insecurity may be characterized by uncertainty and anxiety regarding food access and compromising the quality of the diet and having a less balanced and more monotonous diet,” says Mguni.
The 50.8 percent of the population in Botswana which was affected by moderate to severe food insecurity are characterized as people experiencing moderate food insecurity and face uncertainties about their ability to obtain food. These people have been forced to compromise on the quality and/or quantity of the food they consume according to the report on food insecurity.
Those who experience severe food insecurity, the 22.2 percent of the population, are people who have typically run out of food and, at worst, gone a day (or days) without eating. According to the statistics, rural area population experienced moderate to severe food insecurity at 65 percent while urban villages were at 46.60 percent and cities/town were at 31.70 percent. Those experiencing the most extreme and severe insecurity were at rural areas making 33.10 percent while urban villages and towns were at 11.90 percent and 17.50 respectively.
According to a paper compiled by Sirak Bahta, Francis Wanyoike, Hikuepi Katjiuongua and Davis Marumo and published in December 2017, titled ‘Characterization of food security and consumption patterns among smallholder livestock farmers in Botswana,’ over 70 percent of Botswana’s population reside in rural areas, and majority (70%) relies on traditional/subsistence agriculture for their livelihoods.
The study set out to characterize the food security situation and food consumption patterns among livestock keepers in Botswana. “Despite the policy change, challenges still remain in ensuring that all persons and households have access to food at all times. For example, during an analysis of the impacts of rising international food prices for Botswana, BIDPA reported that food prices tended to be highest in the rural areas already disadvantaged by relatively low levels of income and high rates of unemployment,” said the study.
According to the paper, about 9 percent of households were found to be food insecure and this category of households included 6 percent of households that ranked poorly and 3 percent that were on the borderline according to the World Food Programme’s (WFP) definition of food security.
Media reports state that the World Bank has warned that disruption to production and supply chains could ‘spark a food security crisis’ in Africa, forecasting a fall in farm production of up to 7 percent, if there are restrictions to trade, and a 25 percent decline in food imports.
Food security in Botswana or food production was also attacked by the locust pandemic which swept out this country’s vegetation and plants. The locust is said to have contributed to 25 percent loss in production.
Global lockdown have been a thorn in diamonds having shiny sales, but a lot of optimism shows with the easing of Covid-19 restrictions, the precious stones will be bought with high volumes towards festive season. The diamond market is however warned of the resurgence of Covid-19 in key markets presents ongoing risks amid the presence and optimist about the new Covid-29 vaccines.
The latest findings published as De Beers Group’s latest Diamond Insight ‘Flash’ Report, which looks at the impact of the pandemic on relationships and engagements, has revealed that in the US that more couples than ever are buying diamond engagement rings. Bridal sales is mostly the primary source of diamond jewellery demand in recent months, De Beers said.
According to De Beers, interviews with independent jewellers around the US revealed that the rate of couples getting engaged has increased compared with the period when Covid-19 first had an impact in the US in the spring.
“In addition, despite challenging economic times, consumers were spending more than ever on diamond engagement rings – often upgrading in colour, cut and clarity, rather than size. Several jewellers speculated that with consumers spending less on elaborate weddings and/or honeymoons in the current environment, they had more to spend on choosing the perfect ring,” said De Beers.
According to De Beers, a national survey of 360 US women in serious relationships, undertaken in late October in collaboration with engagement and wedding website, The Knot. This survey is said to have found that the majority of respondents (54%) were thinking more about their engagement ring than the wedding itself (32%) or the honeymoon (15%), supporting jewellers’ hypothesis that engagement ring sales were benefiting from reduced wedding and travel budgets in light of Covid-19 restrictions.
When it came to researching engagement rings, online was by far the predominant channel for gaining ideas/inspiration at 86% of consumers surveyed, with 85% saying they had saved examples of styles they liked, according to De Beers. According to the survey, only a uarter of respondents said they had looked in-store at a physical location for design inspiration.
“For many couples, the pandemic has brought them even closer together, in some instances speeding up the path to engagement after forming a deeper connection while experiencing lockdown and its associated ups and downs as a partnership. Engagement rings are taking on even greater symbolism in this environment, with retailers reporting couples are prepared to invest more than usual, particularly due to budget reductions in other areas,” De Beers CEO Cleaver said.
According to De Beers Group, its Diamond Insight Flash Report series is focused on understanding the US consumer perspective in light of Covid-19 and monitoring how it evolves as the crisis evolves. Also, the company said, it is augmenting its existing research programme with additional consumer, retailer and supply chain touch-basis to understand the pain points and the opportunities for stakeholders across the diamond pipeline.
Demand for diamonds is as hard and resilient as the precious stone itself. De Beers pocketed US$ 450 million in its recently held ninth rough diamond sales cycle, and the company says it is more flexible approach to rough diamond sales during the ninth sales cycle of 2020, with the Sight event extended beyond its normal week-long duration.
“Steady demand for De Beers Group’s rough diamonds continued in the ninth sales cycle of the year, reflecting stable consumer demand for diamond jewellery at the retail level in the US and China, and expectations for reasonable demand to continue throughout the holiday season. However, the resurgence of Covid-19 infections in several consumer markets presents ongoing risks,” said De Beers CEO Bruce Cleaver recently.
High expectations are on diamonds being a sentimental gift for holiday season or as the most fetished gift. However the ninth cycle was lower than the eighth which registered US$ 467 million. For the last year period which corresponds with the current one, De Beers managed to raise US$ 400.